HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 03-21-2002MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
March 21, 2002
PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Tim Bildsoe, Sandy
Hewitt and Leon Michlitsch
ABSENT: None
STAFF PRESENT: Executive Director Anne Hurlburt, Housing Manager Jim Barnes, and
Office Support Representative Barb Peterson
OTHERS PRESENT: Jodi Boedigheimer, Grace Management Representative
1. CALL TO ORDER
A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair
Henderson on March 21, 2002 at 7:05 p.m.
2. APPROVAL OF MINUTES
MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe, recommending
approval of the February 21, 2002 minutes.
Vote. 5 Ayes. Motion approved unanimously.
3. CONSENT AGENDA
Commissioner Hewitt requested that the Plymouth Towne Square Monthly Report be pulled
from the consent agenda for discussion.
A. Plymouth Towne Square Monthly Report
Commissioner Hewitt inquired about the roof leak noted in the PTS monthly report and asked if
it was from the original roof problem. Housing Manager Barnes said that it is and the problem is
that two roofs come together into a valley and without much sun in that area, the snow backs up
past the ice and water shield. He said that following installation of heat tape the problem should
be corrected. Commissioner Hewitt asked if it was the same apartment that had a leakage
problem last year. Housing Manager Barnes said it is one of them that received attention last
year. Commissioner Hewitt asked if there is a plan in place if the heat tape or the roof saddle
doesn’t work. Housing Manager Barnes said we do not. Ms. Boedigheimer asked if SELA
Roofing is installing insulation. Housing Manager Barnes stated that we are not addressing the
insulation issue at this time. Commissioner Hewitt inquired if a refund for the inconvenience of
the leakage should be given to the apartment resident. Housing Manager Barnes said the leakage
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March 21, 2002
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has not been that extensive and no personal belongings have been damaged. He said we will
continue to monitor the situation.
Commissioner Hewitt inquired about the bonds issued for Plymouth Towne Square. Director
Hurlburt replied that the HRA’s finances of Plymouth Towne Square was handled as a private
placement with the City becoming the Bond Holder. The HRA is obligated to pay the principle
and interest on the Bonds.
Commissioner Bildsoe inquired as to how many garage spaces there are at PTS. Ms.
Boedigheimer said there are approximately 60 stalls. She added they have all been rented until
recently. Options for rental of the unused stalls were discussed but will not be pursued due to
security and liability reasons. Ms. Boedigheimer said she believes the problem will correct itself
when the two bedroom units are filled. Commissioner Ludovissie suggested that we monitor the
situation closely and stated that he prefers rental for the residents’ use only.
MOTION by Commissioner Bildsoe, seconded by Commissioner Hewitt, approving the
Plymouth Towne Square monthly report.
Vote. 5 Ayes. Motion adopted unanimously.
4A. Plymouth Towne Square 2002 Revised Budget
Housing Manager Barnes stated that the recommended changes to the budget have been made.
He explained that on the expenditure side an adjustment was made in salaries of ($25,114)
reflecting the reduction of one full time employee. He also noted that two adjustments were
made in the Add Back Non-Cash Items category. The first item, an error in the Reserve
Replacement line item was corrected on the spreadsheet and the $49,500 shown is now the
correct amount. The second adjustment in this category was the removal of the replacement of
the sidewalk that is deteriorating and $10,000 was added back in. The sidewalk was repaired
rather than replaced.
Housing Manager Barnes explained that in the memo of November 15, 2001 the amount of funds
that was to be transferred from reserves to have a balanced budget was incorrect. The shortfall
reported was ($13,855), but after further review and taking into consideration the changes in
expenditures, the shortfall is now approximately ($41,466). He explained that the reserve
accounts currently have a balance in excess of $418,116, so there are sufficient funds to cover
the deficit.
Housing Manager Barnes said that the rents will decrease by approximately $2,000 for the 2002
budget. Commissioner Ludovissie asked why the rent amount is now lower than originally
predicted. Director Hurlburt explained that even by using a 35% standard some tenants would
still see a decrease. She stated that this figure could change once staff has recertified the
resident’s income based on changes made to the rent structure. Chair Henderson asked if those
are the only line items that changed. Housing Manager Barnes replied affirmatively.
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March 21, 2002
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MOTION by Commissioner Hewitt, seconded by Commissioner Ludovissie, to approve the
revised 2002 operating budget for Plymouth Towne Square.
Vote. 5 Ayes. Motion adopted unanimously.
4B. Proposed Changes to Plymouth Towne Square Admissions and Occupancy Handbook
Transition Timeline
Housing Manager Barnes stated that the revised Plymouth Towne Square Admissions and
Occupancy Handbook is enclosed in both a redlined version as well as a clean copy. Chair
Henderson asked if the handbook is issued to residents. Director Hurlburt replied that it is not
and explained that this handbook is the Plymouth HRA’s directive to the management company.
Housing Manager Barnes explained the new full rents and minimum rents. Minimum rents have
been set at $200 for a one bedroom unit and $300 for a two bedroom unit. Full market rents are
782 for a one bedroom unit and $1,001 for a two bedroom unit. We will now use 35% of their
adjusted monthly income, less a utility allowance to determine the residents’ portion of the rent
collected. Housing Manager Barnes stated that 5% will now be used for determining income on
assets that are greater than $5,000. This is an increase from 3%, which was the previous policy
on calculating assets. For amounts less than $5,000, actual income earned on the assets will be
used.
Housing Manager Barnes explained the new policy relating to single persons occupying two
bedroom units. A single person will be required to move to a one bedroom unit based on either
their willingness to do so or their position on the waiting list, which will be determined by a
lottery drawing. If they decline to move when it is their turn, within a 60 day time period, and no
one else on the list elects to move, their rent will be adjusted to full market rent for two bedroom
units.
Housing Manager Barnes stated that the implementation date will be September 1, 2002 for
existing residents. The rent structure for new residents and the policy regarding singles
occupying two bedroom units will be effective April 1, 2002.
Commissioner Hewitt asked what the turnover rate has been for one bedroom units in the last
year. Housing Manager Barnes stated that 8 one bedroom units turned over last year. He said
that in the next few years there could be more than 8-10 units per year due to the aging of
residents. Commissioner Hewitt asked if the waiting list could start with very low subsidies.
Director Hurlburt explained that very low subsidies will not be in effect after Sept. 1, so it will be
on a volunteer basis and then by lottery. She also explained that residents moving from two
bedroom units into one bedroom units would be eligible for assistance from Plymouth Towne
Square for incidental moving expenses.
Commissioner Hewitt asked about the time frame for moving from two bedrooms to one
bedroom units. Director Hurlburt said the policy would be put into effect right away.
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March 21, 2002
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Commissioner Hewitt stated that the current levels of subsidy exist until Sept. 1, 2002 and
inquired as to how the rent system will work until then. Ms. Boedigheimer asked if they can
start with the very low subsidies since there is an in house waiting list for those. Director
Hurlburt said that we should leave everyone at the level they are at until the recertification
process is completed. Ms. Boedigheimer asked if the Sept. 1, 2002, date is for all residents with
no exceptions. Director Hurlburt replied affirmatively.
Commissioner Ludovissie asked about the pet policy, inquired as to how many pets there are in
the building, and if the security deposit should be increased. Ms. Boedigheimer said there are
at least five cats and one bird. Ms. Boedigheimer said there is a deposit fee and sometimes a
monthly fee for a pet at other apartment complexes that Grace Management oversees. She stated
there is a limit of one pet per apartment at PTS. Director Hurlburt asked if pets are being
registered when recertifcations are performed or lease renewals are done. Director Hurlburt
suggested adding language to the pet policy that all pets need to be licensed with the City.
Commissioner Ludovissie stated that he felt the interim recertification requirement of reporting
income changes of $40 or more per month was too low. Housing Manager Barnes explained that
the figure was based on Section 8 guidelines and we are trying to keep the policies for PTS as
close to the Section 8 policies as possible.
Chair Henderson asked how the Admissions and Occupancy Handbook could be constructed so
it would not have to be revised every time the rents are changed. She suggested putting all time
dated information into an appendix. She also inquired about the referral to HUD under
Computation of Annual Income and asked if it was a good idea to tie the HRA to HUD numbers.
Director Hurlburt said it is based on the annual changes in median income as determined by
HUD.
Chair Henderson inquired about the section on Page 8 of the red-lined version referring to Unit
Size and Minimum Rents**. She said the asterisks should be crossed out. Chair Henderson
suggested moving rent data to an appendix. Director Hurlburt stated that the information is
easier to read and follow in this format until the recertification process is finished. She also
stated this handbook is for the use of the manager and she is familiar with that format.
Chair Henderson stated that Page 25 of the red-lined edition really ties us into using HUD
Section 8 rents and wondered if that is what we really want. Director Hurlburt said we could
change the definition to read “as determined by the HRA”.
Housing Manager Barnes said the final changes would be made after the recertification process
has been completed.
Discussion was held on Section 8 Fair Market Rent (FMR) limits. Commissioner Ludovissie
asked if there is a need to keep the Section 8 limits and whether rents would get too low for
residents to qualify. Director Hurlburt said they would not get too low but they could get too
high. She said if we remove the item regarding Section 8 FMR’s then the Board would need to
act on the changes each year in order to adjust the numbers for Plymouth Towne Square. Chair
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March 21, 2002
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Henderson asked if the HRA would want to be involved in the rent changes each year. Director
Hurlburt said another option would be to say the rents will be determined by the HRA to be
effective in a designated month each year. Housing Manager Barnes asked when the rent survey
is done. Director Hurlburt stated that it is done in August or September, but it is usually October
before the new FMR’s are approved. The Board decided that rents would be updated in January,
beginning in 2004 and that the language in the Admission and Occupancy Handbook should state
that the HRA will determine the Fair Market Rents for PTS.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving the
revised Plymouth Towne Square Admissions and Occupancy Handbook.
Vote. 5 Ayes. Motion approved unanimously.
Other Business:
Housing Manager Barnes explained the handout, which was distributed before the meeting. It
refers to the Metropolitan Housing Opportunity Program (MHOP) units, which were previously
discussed. He said there will only be 10 units rather than 20. The HRA is not required to be a
party to the agreement. The Met Council is confident they will find units in Plymouth to meet
their criteria. Commissioner Hewitt asked if the Met Council chose to change it to 10 units.
Housing Manager Barnes replied yes and it was because they did not have enough funding to
complete 20 units at this time.
Commissioner Ludovissie complimented the staff on the housing forum. Director Hurlburt said
that feedback has been positive. Discussion followed regarding the housing forum.
Commissioner Bildsoe suggested talking about how to handle the sale of Bassett Creek
Townhomes and the HRA’s right of first refusal at the next meeting, and Housing Manager
Barnes said they would make sure it was on the agenda.
5. Adjournment
Meeting adjourned at 8:15.
HRA/Minutes/3/21/02